2. (SBU) Summary. The South Africa Department of Transport
(SADOT) requests that the U.S. Department of Transportation
(USDOT) set aside Delta Airline's (Delta) opposition to South
African Airway's (SAA) USDOT application to renew its permit
to operate air transportation services between the U.S. and
South Africa. SADOT claims that Delta's opposition is based
on an alleged attempt by SADOT and the South African Civil
Aviation Authority (SACAA) to delay approval of a separate
application by Delta to amend its South African Foreign
Operators Permit, thereby giving SAA a competitive advantage
over Delta. SADOT's response to the Delta allegation is
contained in a diplomatic note (see para 4). End Summary.

3. (SBU) Post Civil Aviation Officer received a diplomatic
note regarding a dispute between Delta Airlines and SADOT
from the South African Department of Foreign Affairs (DFA) on
March 27. The note was sent March 28 via email to EB/TRA
Joel Reifman and USDOT Keith Glatz with a request for
clarification and required action by post. Civil Aviation
Officer sought clarification regarding the note in a meeting
with SADOT Chief of Aviation Anwar Gany on April 25. Gany
explained that SAA had filed an application with USDOT to
renew its permit to operate air transportation services
between South Africa and the United States. Gany reported
that Delta filed an opposition to SAA's application until
such time that Delta was able to resolve difficulties it
allegedly was encountering with SACAA and SADOT concerning
certification of certain Delta aircraft used for its US-South
Africa service. Gany said that the reason SADOT has not
approved Delta's application to amend its Foreign Operators
Permit is that Delta's request is incomplete. Gany asked
that Delta's opposition to SAA's application with the USDOT
be set aside.

4. (SBU) Begin Text: Ref: BL1/USA/8/A26. The Department of
Foreign Affairs of the Republic of South Africa presents its
compliments to the Government (sic) United States of America
and has the honour to refer to the Air Services Agreement
between the two countries.

South Africa has submitted applications for the renewals of
certain exemptions to give them permission to operate
scheduled and chartered air services between South Africa and
the United States. As, (sic) such Delta Airlines objected
based on the reason that the South African Government could
not grant approval for the entire fleet of Boeing 767-300 Er
aircraft between the United States and South Africa.

The South African Department of Transport wishes to confirm
that Delta Airlines (sic) application for an amendment to
their current Foreign Operator's (sic) Permit was received on
December 14, 2006 for the 32 Boeing 767 registered aircraft
via their Consultant Deneys Reitz Inc. only 20b (sic) B767
registered aircraft were approved and the remaining 12
aircraft were put on pending because their Certificate of
Release to Service did not comply with ICAO document 8,
Annex8.8.1. (sic) The Department of Transport has to this
effect communicated the matter to Delta Consultant (sic) who
in return advised that Delta Airlines would be advised
accordingly.

The Department of Transport is pleased to inform Delta
Airlines that on 15 March, 2007 certificates for the 12
aircraft that were pending were received and the status of
those aircraft was then reviewed, (sic) they were included
the (sic) Delta Airlines (sic) fleet. The Department of
Transport in (sic) currently in the process of issuing Delta
Airlines with the amended Foreign Operator's (sic) Permit.
The Department of Transport has no intention of prejudicing
Delta Airlines in this regard.

The Department of Foreign Affairs of the Republic of South
Africa avails itself of this opportunity to renew to the
Consulate General (sic) the assurances of its highest
consideration. 23 March 2007. End Text.

5. (SBU) Action request for State/EB/TRA and USDOT: Please
advise on how post should respond to dip note
TEITELBAUM

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